The FINANCIAL -- Swiss Re Corporate Solutions Ltd, the commercial insurance arm of the Swiss Re Group, and Bradesco Seguros S.A., a company controlled by Banco Bradesco S.A., have closed the transaction announced in October 2016 and officially started the joint venture operation in Brazil.
Bradesco Seguros' commercial large-risk portfolio has been integrated into Swiss Re Corporate Solutions Brasil Seguros S.A. (SRCSB), making it one of the leading Brazilian players in this segment. Swiss Re Corporate Solutions Ltd retains a 60% stake in SRCSB while Bradesco Seguros holds a 40% equity stake.
The partnership gives SRCSB exclusive access to Bradesco Seguros' distribution network, which is comprised of more than 140 insurance branches, over 5 000 Banco Bradesco bank branches and around 40 000 registered insurance brokers and agents. As part of the transaction, approximately 120 of Bradesco Seguros' large-risk specialists in Sao Paulo and Rio de Janeiro have joined SRCSB, according to Swiss Re.
A promising business
Upon closing this transaction, SRCSB became one of the leading insurers in the large-risk insurance market in Brazil, with a total of roughly BRL 820 million (USD 250 million) in gross written premium and significant growth potential.
"This partnership reaffirms our commitment to the Brazilian market," states Agostino Galvagni, CEO Swiss Re Corporate Solutions and a member of the Swiss Re Group Executive Committee. "By joining forces with Bradesco Seguros, we're able to bring our innovative product offering to an even wider segment of mid-sized and large corporate clients in the region."
With the financial backing of the Swiss Re Group, Swiss Re Corporate Solutions offers in-depth underwriting knowledge and large net capacity. At the same time, Bradesco Seguros brings its deep local market expertise and extensive distribution network with offices throughout Brazil.
Octavio de Lazari Junior, CEO of Bradesco Seguros, states: "The Bradesco Seguros Group and Swiss Re Corporate Solutions are aligned in terms of long-term vision, and have complementary competencies and portfolios. The joint venture enables us to expand our product offering across all insurance lines. The association also reaffirms our belief in the growth potential of Brazil's large-risk insurance segment."
Luciano Calheiros, CEO Swiss Re Corporate Solutions Brazil, will lead the joint venture operation.
The transaction was approved by the Brazilian Superintendence of Private Insurance (SUSEP), the Brazilian government's Administrative Council for Economic Defense (CADE) and the Central Bank of Brazil (BACEN).